Tuesday, the Indian market may open flat amid a subdued trend in the other Asian markets this morning. Trading could be range bound on alternate bouts of buying and selling. While net buying by foreign funds and short covering may lead to some recovery, uncertainty on the political front and weak global cues may restrict big gains.

On Monday, foreign funds bought shares worth Rs.79.88 crore on a net basis, while domestic financial institutions sold shares worth Rs.17.31 crore, according to data released by the Bombay Stock Exchange. FIIs made a net investment of RS.1, 240.60 crore on Friday, data available with the market regulator SEBI revealed.

With analysts predicting an early recovery, investors look forward to the March IIP data scheduled to be released later in the day for a confirmation of the view. Banking stocks may come under significant selling pressure after their peers on Wall Street took a heavy beating overnight. Auto and steel stocks may be in the stoplight due to industry specific developments.

Currently, most of the markets across the Asia-Pacific region are trading in the red with participants resorting to profit taking after recent sharp gains. Hong Kong's Hang Seng index is the only exception, which is trading up a modest 0.17%.

Wall Street ended on a weak note on Monday with stocks moving mostly lower during the session, as traders chose to take profits after recent strong gains. The major averages all closed firmly in negative territory, although the tech-heavy Nasdaq posted a relatively modest loss. Billionaire investor Warren Buffet's Berkshire Hathaway's weak quarterly numbers also hurt sentiment to an extent.

Banking stocks bore the brunt of pressure on Monday after U.S. Bancorp, BB&T and Capital One revealed plans to sell common stock in order to raise proceeds to repay funds received under the government's financial bailout program. The Dow Jones Industrial Average fell 1.82%, the S&P 500 index drifted down 2.15% and the Nasdaq Composite closed down 0.45%.

Meanwhile, the Indian ADRs closed sharply lower across the board. Among the major decliners, Sterlite Industries slumped 6.78%, Satyam tumbled 5.13%, Wipro fell 4.8%, ICICI Bank declined 3.52%, Reddy's Laboratories shed 1.73% and HDFC Bank moved down 1.46%.

Crude futures ended lower at $58.50 a barrel, down 0.22% in New York trading on Monday, as players booked profits after prices hit a near six-month high on Friday.

Oil markets mirrored the sentiment on Wall Street, where investors cashed in after a two-month climb.

The partially convertible rupee finished Monday's session lower at Rs.49.52/53 against the dollar, down 0.5 percent, weighed down by dollar demand from importers and extended losses in the stock market amid fears of a split verdict in general elections.

On Monday, the Indian market ended in the red for the second straight day, weighed down by weak global cues and uncertainty on the outcome of general elections. The benchmark BSE Sensex closed at 11,683, down 193 points or 1.6% from the previous close and the S&P CNX Nifty fell 66 points or 1.8% to 3355. Realty was the worst performing sector, with the BSE Realty index shedding over 5%. Banking, metal, IT and capital goods stocks were the other major decliners.

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